Deep Yellow Limited · ASX:DYL
Deep Yellow — Morgan Stanley Uranium Investor Forum (September 2012)
31 slides from Deep Yellow's conference presentation, Sep 26, 2012
Slide 1: Morgan Stanley Uranium Investor Forum
Deep Yellow For personal use only Limited Morgan Stanley Uranium Investor Forum Sydney 26 September 2012 Greg Cochran – Managing Director ASX: DYL www.deepyellow.com.au
Slide 2: Disclaimer
Disclaimer This document has been prepared by Deep Yellow Limited (Deep Yellow, DYL or the Company) in connection with providing an overview to For personal use only interested analysts and investors. This presentation is being provided for the sole purpose of providing information to enable recipie
Slide 3: Presentation Overview
Presentation Overview For personal use only Corporate Profile Market Overview Uranium in Namibia Deep Yellow’s Portfolio Omahola Project Tubas Sand Project Raptor Transaction Conclusion 3
Slide 4: Corporate Profile
Corporate Profile For personal use only The Board Capital Structure – as at 21 Sept 2012 Mervyn Greene – Chairman Shares on Issue 1,269.412 M Greg Cochran – Managing Director Unlisted Options/Perf. Rights 4.94 M Martin Kavanagh – Executive Director Market Cap (@ 4.2c) ~ 58 M Gillian Swaby – N.E.D Ne
Slide 5: Uranium's Recent Price Performance
Uranium’s Recent Price Performance For personal use only Since July 2011 uranium has outperformed almost all commodities 5
Slide 6: Demand Projections
Demand Projections For personal use only 6 Source : WNA
Slide 7: Supply Projections
Supply Projections For personal use only Consistently optimistic forecasting leads to industry complacency7 Source : WNA
Slide 8: Demand & Supply Issues
Demand & Supply Issues Demand remains strong, underpinned by: For personal use only • Growth in China, Russia, India and Korea • New entrants, primary in the Middle East • Sustained demand from existing players (USA, UK) Supply constrained by: • Inadequate incentive price for new projects • Operatio
Slide 9: Industry Valuations & Incentive Prices
Industry Valuations & Incentive Prices Date Target Acquirer EV US$/lb For personal use only Aug – 12 Yeelirrie Uranium Project Cameco 3.48 Mar – 12 Millenium Project (AREVA 27.9% Stake) Cameco 8.00 Feb – 12 Extract CGNPC 7.10 Dec – 11 Kalahari CGNPC 7.10 Nov – 11 Hathor Exploration Rio Tinto 10.10 A
Slide 10: Namibian Uranium Mines and Projects
Namibian Uranium Mines and Projects Trekkopje – Areva For personal use only (100 ppm cut-off) 335 Mt @ 149 ppm: 110 Mlbs Valenica – Forsys Metals (67 ppm cut-off) 176 Mt @ 156 ppm: 61 Mlbs Marenica – Marenica Energy Limited (100 ppm cut-off) 196 Mt @ 169 ppm: 73 Mlbs Etango – Bannerman Resources Lim
Slide 11: Namibian Uranium Mines and Projects
Namibian Uranium Mines and Projects For personal use only Grade counts, not just size… 11
Slide 12: DYL's Namibian Portfolio
DYL’s Namibian Portfolio For personal use only 4,195 km2 exploration area: 101.4 Mlbs in resources Note: Exploration in Namibia is conducted by DYL’s wholly-owned subsidiary Reptile Uranium Namibia (RUN)
Slide 13: Omahola: Flagship Project
Omahola: Flagship Project For personal use only Located in Namibia’s “Alaskite Alley” Alaskite alley Trend includes Rossing Uranium Mine (Rio Tinto) and the Husab Project (Formerly Extract Resources) Three Deposits to feed one plant: • Ongolo – high grade alaskite hosted uranium mineralisation • MS7
Slide 14: Omahola Project: Resource Base
Omahola Project: Resource Base For personal use only Ongolo & MS7 (250 ppm cut-off) 25.8 Mt @ 416 ppm: 23.6 Mlbs EIA Commencing 2012 Typically 2 Year Process INCA (250 ppm cut-off) 12.4 Mt @ 492 ppm: 13.4 Mlbs Environmental Clearance achieved Mining Licence Application submitted Tubas-TRS (option to
Slide 15: Omahola Project: Status
Omahola Project: Status Interim PFS results on INCA/TRS Deposits (SNC-Lavalin – Jan 2011) For personal use only • 2.2 Mlbs pa design capacity, assumed 12 year mine life • Open pit mining, conventional acid leach processing plant • Capex: ~US$330m and Opex: ~US$30/lb Objective: finalise Pre-Feasibili
Slide 16: Omahola Project: Exploration Success
Omahola Project: Exploration Success… For personal use only …is rapidly growing the resource base…
Slide 17: Omahola Project: MS7 Section
Omahola Project: MS7 Section For personal use only Typical section showing shallow high grade mineralisation 17 in lower grade alaskite envelope
Slide 18: Tubas Sand Project: Location
Tubas Sand Project: Location For personal use only Tubas Sand Deposit showing area with known red sand
Slide 19: Tubas Sand Project: Overview
Tubas Sand Project: Overview For personal use only Strategy: Develop a small low capex standalone operation initially supplying loaded resin to an existing producer Deposit Characteristics: Large area of well-sorted windblown sands Free flowing/weakly consolidated Low grade by DYL standards (economi
Slide 20: Tubas Sand Project: Schauenburg
Tubas Sand Project: Schauenburg Process: For personal use only Hydrosort®- II Scrubbing Hydrosort®- I 3 X Hydrocyclones Successful Pilot Plant Test: Simple process Uranium Recovery >80% Carbonate reduction >80% Hydrocyclone Mass pull between 10% ~ 20% Schematic Uranium upgrade factor 7.9 (at 10% mas
Slide 21: Tubas Sand Project: Potential
Tubas Sand Project: Potential For personal use only Develop sand mining operation with Schauenburg Plant Construct Resin-In-Leach Circuit on the INCA MLA Produce loaded resin for sale to existing producers Schauenburg plants are modular, ~ 250 tpa U3O8 per module Allows gradual up scaling Indicative
Slide 22: Tubas Sand Project: Next Steps
Tubas Sand Project: Next Steps For personal use only Accelerate project progress: Additional bulk sample testwork (underway) Drill programme to increase resource confidence Mining studies Integrated pre-feasibility and feasibility studies Negotiate offtake agreement and project funding Offtake arran
Slide 23: Tubas Sand Project: Bulk Sample
Tubas Sand Project: Bulk Sample For personal use only Trench for Bulk Sample Spoil Pile
Slide 24: Tubas Sand Project: Separation Testwork
Tubas Sand Project: Separation Testwork For personal use only Pilot Plant Mineral Liberation
Slide 25: Tubas Sand Project: Leach Testwork
Tubas Sand Project: Leach Testwork For personal use only Successfully Loaded IX Resin @ pH 2.5
Slide 26: Corporate: Raptor earn-out terminated
Corporate: Raptor earn-out terminated For personal use only Deep Yellow acquired its Namibian interests in October 2006 from Raptor Minerals Limited in a deal which included an earn-out entitlement Earn-out – 1.5% of Inground value of any project developed on EPLs, settled at decision to mine Heads
Slide 27: Summary – clearly defined strategy
Summary – clearly defined strategy For personal use only Two advanced stage uranium projects in one of the world’s most prominent uranium mining districts in Namibia • Omahola is the only independent high grade Namibian uranium project and it has a rapidly growing resource base • Tubas Sand Project,
Slide 28: Contact Details
Contact Details For personal use only Greg Cochran Managing Director Deep Yellow Limited Level 1, 329 Hay Street Subiaco, Western Australia 6008 T +61 8 9286 6999 M +61 409 938-784 F +61 8 9286 6969 Email: greg.cochran@deepyellow.com.au Email: info@deepyellow.com.au Website: www.deepyellow.com.au
Slide 29: Appendices
For personal use only Appendices
Slide 30: JORC Resource Summary – June 2012
JORC Resource Summary – June 2012 Cut-off Tonnes U3O8 U3O8 U3O8 Deposit Category (ppm U3O8) (M) (ppm) (t) (Mlb) For personal use only NAMIBIA Omahola Project INCA Indicated 250 7.0 470 3,300 7.2 INCA Inferred 250 5.4 520 2,800 6.2 Ongolo # Indicated 250 14.7 410 6,027 13.2 Ongolo # Inferred 250
Slide 31: JORC Compliance Statements
JORC Compliance Statements Namibia The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr Leon Pretorius, a Fellow of the Australasian For personal use only Institute of Mining and Metallurgy. Dr Pretorius, Managin
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